Option Care Health Announces Issuance of $250 Million in Additional First Lien Term Loan and Concurrent Extinguishment of All Outstanding Second Lien Notes

Rhea-AI Summary

Option Care Health (NASDAQ: OPCH) has successfully issued $250 million in additional first lien term loans, aimed at extinguishing $246 million of second lien notes. This financing simplifies the company's capital structure and reduces its cash interest burden, as the interest rate on the new loans is set at Libor plus 3.75%, compared to Libor plus 8.75% for the extinguished notes. The new loans have a maturity date set for August 2026 and will reflect in the first quarter 2021 financial results.

Positive

• Simplified capital structure through the extinguishment of second lien notes.
• Reduced cash interest burden with a decreased interest rate on first lien loans.

Negative

• None.

BANNOCKBURN, Ill., Jan. 21, 2021 (GLOBE NEWSWIRE) -- Option Care Health Inc. (NASDAQ: OPCH)(“Option Care Health” or the Company”), the nation’s largest independent home and alternate site infusion services provider, announced today that it has successfully issued $250 million in additional first lien term loans, the proceeds from which were used to extinguish the entire $246 million remaining outstanding balance of the Company’s second lien notes.

The terms of the additional first lien term loans, including the maturity date of August 2026, are consistent with the Company’s existing first lien credit agreement. The Company’s existing first lien term loans currently bear interest at Libor plus 4.25%; however, subsequent to the effective date of the incurrence of the incremental term loans, all first lien term loans will bear interest at Libor plus 3.75%. The interest rate on the extinguished second lien notes was Libor plus 8.75%.

As a result of the debt transaction described above, the Company has further simplified its capital structure and reduced its cash interest burden. The additional first lien term loan issuance and related retirement of second lien notes will be reflected in the Company’s first quarter 2021 financial results.

About Option Care Health

Option Care Health is the nation’s largest independent provider of home and alternate site infusion services. With over 5,000 teammates, including approximately 2,900 clinicians, we work compassionately to elevate standards of care for patients with acute and chronic conditions in all 50 states. Through our clinical leadership, expertise and national scale, Option Care Health is reimagining the infusion care experience for patients, customers and teammates.

For Investor Inquiries:

Mike Shapiro, Chief Financial Officer
Option Care Health
312.940.2538
Investor.relations@optioncare.com 

FAQ

What is the significance of Option Care Health's recent debt issuance on January 21, 2021?

Option Care Health issued $250 million in additional first lien term loans, allowing it to extinguish $246 million of higher-interest second lien notes, thus simplifying its capital structure.

How does the recent loan issuance affect Option Care Health's interest rates?

The new first lien term loans will lower the interest rate to Libor plus 3.75%, compared to Libor plus 8.75% for the extinguished second lien notes.

When will the financial impact of the new loans be reflected in Option Care Health's reports?

The impact of the new loans and the extinguishment of second lien notes will be included in Option Care Health's first quarter 2021 financial results.

What are the maturity terms for the newly issued term loans by Option Care Health?

The additional first lien term loans have a maturity date set for August 2026.

How does this debt transaction affect Option Care Health's financial management?

The transaction simplifies financial management by lowering interest costs and restructuring debt obligations.